What is the Small Business Identification Tool?

Quick answer

The Small Business Identification Tool, or SBI Tool, identifies which supplier ABNs are treated as small businesses for Payment Times Reporting.

What does this mean?

After the Trade Credit Payment Dataset has been prepared, reporting entities run the supplier ABNs through the SBI Tool. Payments to ABNs identified as small businesses are included in the Small Business Trade Credit Payments Dataset. The Regulator also notes that the SBI Tool contains government ABNs that can assist reporting entities with excluding government payments.

Practical point

The SBI Tool is an identification step, not a substitute for preparing the underlying payment dataset correctly. A supplier being identified as a small business does not turn an otherwise non-reportable payment into a trade credit payment.

Other ways people ask this

• What does the SBI Tool do?
• How do I use the Small Business Identification Tool for PTRS?
• Does the SBI Tool tell me which suppliers to report?
• Can I use the SBI Tool to identify government and small-business ABNs?

Official sources

• Payment Times Reporting Guidance Materials
  Excluded payments – Government and employee payments
  Paragraph: 117 · Page: 34
• Payment Times Reporting Guidance Materials
  SBTCP Dataset
  Paragraph: 163 · Page: 41
• Worked Example – Standard Payment Times Report
  Glossary
  Reference: SBI Tool

Related guidance

• How do I identify small business suppliers for PTRS?
• What if a supplier does not have an ABN?
• Are payments to government entities included in PTRS?

Preparing a Payment Times Report?

Monochrome Compliance can help with the data preparation, validation, reconciliation and reporting process.

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